It’s not a good day for crypto, as most coins are down by an average of 10%. However, Doge has remained relatively stable, and is trading at the same price level it was trading at before the crash. It may not have pumped like the rest before the crash, but it has maintained stability. This may not be what traders like, but it makes Dogecoin practical, and that’s where value will come from in the long run. In 2017, a number of companies had started using Bitcoin (BTC) as a payment method. However, its volatility led some of them to drop it, due to its high volatility. This is a signal that the long-term sustainability of cryptocurrencies depends on their stability to be usable as currencies.
So far, Dogecoin (DOGE) is one of the few that have demonstrated an element of stability. It’s not just this week that Dogecoin (DOGE) has been stable. Even in 2018 when most cryptos were crashing hard, Dogecoin remained stable. It did drop, but its drop wasn’t as steep and random as the rest of the market, making it practical for use in everyday business transactions.
This stability has led to a huge increase in the usage of Dogecoin. Already Dogecoin’s transaction volumes are hinting at increased adoption. At the moment, more than 95% of Dogecoin’s transactions come from merchant transactions, i.e. people using Dogecoin to buy everyday goods and services. This means that it has a head start in adoption, relative to other altcoins that have no usage other than speculative trading.
So how does this play into the value of Dogecoin (DOGE) going into the future? Well, as the market continues on its current trajectory of random pumps and dumps, ultimately money will flow more into stability, for safety reasons. As such, Dogecoin (DOGE) could start to attract more investments, as people begin to appreciate stability over the allure of quick riches. The result will be a sustained and stable increase in the value of this crypto over time.
But one may argue that the inflationary nature of Dogecoin (DOGE) will play against it ever making any serious gains. While such an argument may sound plausible at first, but it ignores the fact that Dogecoin is a currency. As long as its demand is rising faster than its rate of inflation, Dogecoin’s value will grow. So far this has been the case. That’s why Dogecoin (DOGE) has held on to its value, even as coins with much lower supply lose value. It’s because value has little to do with supply, but with the level of usage of a cryptocurrency.
In essence, the moment cryptocurrencies become the norm for everyday payments, Dogecoin (DOGE), based on its current use levels, will be one of the most used cryptos in the market. Under such conditions Dogecoin (DOGE) achieving parity with the dollar would not be a far off possibility. This is one crypto that is never taken seriously, but holds lots of potential for growth.